- February 20, 2019
- Posted by: Administrator
- Category: Consultant, Tax News
On January 10, 2019 the government has issued Government Regulation Number 1 of 2019 (“GR 1/2019”) concerning Foreign Currency Proceeds from Exports of Natural Resources Business, Exploitation, and/or Processing Activities.
Foreign Currency Proceeds from Exports of Natural Resources, hereinafter abbreviated as DHE SDA, are required to be included in the Indonesian financial system. DHE SDA which must be included in the Indonesian financial system is the export proceeds from:
In general, GR 1/2019 requires the DHE SDA to be placed in a special Bank account no later than three months after the month of Export Declaration (Pemberitahuan Ekspor Barang – PEB).
DHE SDA can be utilized for payment of:
a. Export duty and other export levy;
d. Profit/dividend; and/or
e. Other needs of the investor as stipulated in Artcle 8 of Law Number 25 of 2017 concerning Capital Investment.
If such payments are made using escrow account, the exporter should create an escrow account at Indonesian Bank.
The administrative sanctions of not complying with GR 1/2019 may result in
a. Administrative penalty;
b. Export blocking; and/or
c. Business License revocation.
PP No. 1 of 2019 is in effect starting January 10, 2019